Anonymity and pseudonymity refer to two different ways of obscuring or concealing a person’s identity.
Within De-Fi, the terms mean a way of protecting their identity and concealing their transactions.
In the context of blockchain security, pseudonymity means that whilst the identity of the person making transactions is unknown, all of the transactions that they make can be linked to the same pseudonymous identity.
By contrast, anonymity means that none of the transactions or activity conducted on the blockchain or on exchanges can be linked to one user, pseudonymous or otherwise.
Put simply, anonymity is a much stronger form of privacy than pseudonymity, however, with that comes some far-reaching implications as we shall see.
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